Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order relates to the commencement of the disclosure regime for registered banks under the Reserve Bank of New Zealand Act 1989.

The order—

• (a) Appoints 30 June 1996 as the date for the expiry of section 181(6) of the Reserve Bank of New Zealand Act 1989:

• (b) Brings into force, on 1 July 1996, section 181(8) of the Reserve Bank of New Zealand Act 1989:

• (c) Brings into force, on 1 January 1996, sections 6 and 13(3) of the Reserve Bank of New Zealand Amendment Act 1995.

At present registered banks are, by virtue of section 5(2C) of the Securities Act 1978 exempt from the trustee and trust deed requirements of that Act in the case of offers of debt securities to the public. Section 5(2C) was enacted by section 181(6) of the Reserve Bank of New Zealand Act 1989. Section 181(7) of that Act provides for that exemption to expire on a date to be appointed by Order in Council.

Clause 2 of the order appoints 30 June 1996 as the date on which that exemption expires.

Section 181(8) of the Reserve Bank of New Zealand Act 1989 enacts a new section 5(2C) which exempts registered banks from the trustee, trust deed, and prospectus requirements of the Securities Act 1978. Registered banks will remain subject to the advertising requirements of that Act. The new section 5(2C) comes into force on a date to be appointed by Order in Council

Clause 3 of the order appoints 1 July 1996 as the date on which the new section 5(2C) comes into force.

Clause 4 brings into force, on 1 January 1996, sections 6 and 13(3) of the Reserve Bank of New Zealand Amendment Act 1995.

Section 6 repeals section 79 of the principal Act. Section 79 provides for the payment of annual fees by registered banks

Section 13(3) enacts section 38AA of the Securities Act 1978. The new section 38AA prescribes the requirements for authorised advertisements by registered banks under that Act.